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Asset Based Financing
Discover the options to invest in large assets with a long useful life, through structured leasing. As well as the possibility of obtaining tax advantages.
A capital investment line for financing assets
Asset Based Finance (ABF) is a capital investment line that Banco Santander offers to finance assets taking advantage of tax benefits.
It is an operation for clients with a good rating and strategic investments in relatively liquid assets, such as:
- Transport assets, such as ships, planes, trains, helicopters, etc.
- Assets related to energy facilities, for example investments in efficiency improvements.
- Hardware, for example, ATMs.
Banco Santander has experience in all kinds of sophisticated operations. The Bank signed in 2019 more than 90 operations, including subrogations, advances and H2020.
Banco Santander has a team with more than 15 years of experience in structured leasing operations, with an excellent reputation, both internally and in the naval and aeronautical sectors.
How to arrange this financing
If your company needs access to financing, go to your nearest Santander office.
Financing for long-lived assets
Asset Based Financing is a financial-fiscal structure for large assets with a long useful life in order to:
- Provide financing for the acquisition of the asset (Structured leasing). Structured leasing is offered in two modalities:
- On balance sheet: Financial leasing (FL).
- Off balance sheet: Operational leasing (OL).
- Reduce the cost of building an asset by taking advantage of a tax advantage (Tax Lease) or grant (Royal Decree 442/1994, of March 11, on premiums and financing for shipbuilding).
Ask at your Santander office what operation best suits your investment.
FAQs
No. Generally clients from any sector can participate, as long as the approval of the Bank's Money Laundering Prevention (PBC) is obtained. Sometimes the sponsor vetoes a specific sector, but not always.
Yes. In the cases of Film and R&D Tax Equity Operations, the General Directorate of Taxes (DGT) has issued many favourable binding decisions in relation to the structure.
Yes. The EU published a favourable resolution for film in May 2014 and in the case of R&D, the Bank requested two legal opinions from two top-level law firms and both concluded favourably on said compatibility.
Santander continues to be the administrator of the Economic Interest Group (AIE-Agrupación de Interés Económico) throughout the life of the structure and also maintains a 1% interest in it.
The investor's benefit is exclusively fiscal, obtaining savings in the payment of Corporate Tax by benefiting from the deductions and negative tax bases of the AIE. The profitability is close to 20%.
The manager obtains a return of 15% -20% on the amount invested by the client (without capital consumption) and also provides the client with a differentiating product with great added value.
- Structured leasing: Clients with good ratings with the intention of financing strategic assets with a long useful life and with potential residual value at the end of the lease.
- Tax Lease for ships:
- Shipyards/shipowners, with the aim of reducing the final cost of the vessel to the shipowner.
- Tax investors, with the aim of obtaining a tax return.
- Royal Decree 442: Shipyards/shipowners, with the aim of reducing the final cost of the vessel to the shipowner.
- Structured leasing: It is a common alternative for financing long-lived assets.
- Tax Lease for ships: Shipyards and ship owners know the product perfectly and have been using it under the new scheme for several months. Tax investors know it historically but an educational process is required regarding the new scheme.
- Royal Decree 442: Shipyards/ship owners know the product perfectly and use it regularly.